Thread:

While the entire US crypto industry (exchanges, funds, associations, PsPs, lobbyists, etc) is currently focused on fighting the AML rules proposed by FinCEN, the XRP Community has been left ALONE fighting the securities battle FOR THE BENEFIT of the whole industry.

1/

The entire US crypto industry (excluding the XRP Community) has been miserably failing to acknowledge that, until now, all the SEC has had for purposes of characterising a blockchain-based token as a security under the Securities Act of 1933 ...

2/
... is a 75 year-old judicial precedent (i.e. 1946 Howey Test), and some non-binding internal guidance. That's it. Nothing more. No clear federal regulations and no clear binding precedents.

3/
Should the SEC definitively win the Complaint filed against Ripple, it would gain a contemporary (and *binding*) judicial precedent essentially defending the posture that it is rightful to apply a 75 year-old precedent to 2020's cutting edge technology, ...

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... giving the SEC's enforcement division a clear path moving forward within the crypto industry.

With such precedent (which the SEC hasn't been able to obtain so far, as a result of the early settlements reached with other crypto projects), the SEC would be ...

5/
... ultimately legitimized to go after every other crypto project whose characteristics could eventually fall under the prongs of a 75 year-old Test, i.e. probably all cryptocurrencies excluding Bitcoin and maybe Ether.

6/
This would eventually force all the US crypto industry participants to reduce the scope of their business models to only two digital assets, therefore limiting available revenue channels and freedom to innovate with new technological tools.

7/
However, the US crypto doesn't seem to care about that, and will rather go as far as throwing a single project under the bus (despite the destructive consequences potentially deriving from it), in an attempt to short-sightedly mitigate ...

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... a 'supposed' risk of being charged with liabilities associated with facilitating the sale of unregistered securities that haven't actually been definitively classified as such.

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The US crypto participants have failed to properly assess risks and have failed to identify the current aspects of the market that could derive, in the long-term, to material adverse effects in prejudice of their own businesses.

End.

10/10

More from Crypto

Out of curiosity I dug into how NFT's actually reference the media you're "buying" and my eyebrows are now orbiting the moon

Short version:

The NFT token you bought either points to a URL on the internet, or an IPFS hash. In most circumstances it references an IPFS gateway on the internet run by the startup you bought the NFT from.

Oh, and that URL is not the media. That URL is a JSON metadata file

Here's an example. This artwork is by Beeple and sold via Nifty:

https://t.co/TlJKH8kAew

The NFT token is for this JSON file hosted directly on Nifty's servers:

https://t.co/GQUaCnObvX


THAT file refers to the actual media you just "bought". Which in this case is hosted via a @cloudinary CDN, served by Nifty's servers again.

So if Nifty goes bust, your token is now worthless. It refers to nothing. This can't be changed.

"But you said some use IPFS!"

Let's look at the $65m Beeple, sold by Christies. Fancy.

https://t.co/1G9nCAdetk

That NFT token refers directly to an IPFS hash (https://t.co/QUdtdgtssH). We can take that IPFS hash and fetch the JSON metadata using a public gateway:

https://t.co/CoML7psBhF

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Still wondering about this 🤔


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